As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ___________________?

Related Mcqs:

1. What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset ?

   A. Asset recovery
   B. Depreciation recovery
   C. Period recovery
   D. After-tax recovery

2. What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render ?

   A. Functional depreciation
   B. Design depreciation
   C. Physical depreciation
   D. Demand depreciation

3. What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results ?

   A. Functional depreciation
   B. Design depreciation
   C. Physical depreciation
   D. Demand depreciation

4. ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method ?

   A. 7 eyars
   B. 8 years
   C. 9 years
   D. 10 years

5. Capitalized cost of any structure or property is computed by which formula ?

   A. First cost + interest of first cost
   B. Annual cost – interest of first cost
   C. First cost + cost of perpetual maintenance
   D. First cost + salvage value

6. Capitalized cost of a project is also known as ____________________?

   A. Infinite cost
   B. Life cycle cost
   C. Life cost
   D. Project cost

7. In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year ?

   A. Straight line method
   B. Sinking fund method
   C. Sum-of-year digit method
   D. Declining balance method

8. A telephone switchboard 100 pair cable can be made up with either enameled wire or tinned wire. There will be 400 soldered connections. The cost of soldering a connection on the enameled wire will be P 1.65 on the tinned wire, it will be P 1.15. A 100- pair cable made up with enameled wire cost P 0.55 per linear foot and those made up of tinned wire cost P 0.75 per linear foot. Determine the length of cable run in feet so that the cost of each installation would be the same ?

   A. 1,000 feet
   B. 1,040 feet
   C. 1,100 feet
   D. 1,120 feet

9. What is the reduction in the money value of capital asset is called ?

   A. Capital expenditure
   B. Capital loss
   C. Loss
   D. Deficit

10. An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method____________________?

    A. P 3,279.27
    B. P 3,927.27
    C. P 3,729.27
    D. P 3,792.72